Home Buyers: Know How Much You Can Afford Before Visiting an Open House
Visiting an open house is a great start toward your home-buying journey.
Thousands of real estate agents across the country are delighted to share information and an inside view of desirable properties for sale.
Knowing which homes you can afford could help point you in the right direction.
Benefits of Visiting an Open House
Typically, a real estate agent will host an open house on a weekend for approximately one to three hours.
Whether you’re a first-time home buyer, move-up buyer or you’re downsizing into a smaller home, open houses provide an opportunity to tour local homes for sale.
An interior view tells a more complete story about a home versus a basic drive-by.
If you’re looking for a home within a specific neighborhood, an open house provides some time for you to discuss details about the area.
Unlike speaking with a property owner (FSBO), at an open house, you can get honest answers from a licensed real estate professional, who is required by law to disclose certain property deficiencies.
Additional insight may be gained from questions that other visitors are asking.
What Should You Ask a Real Estate Agent at an Open House?
A real estate agent can answer many questions about a property’s condition, age, number of previous owners and recent upgrades or repairs.
You could also inquire about some of the items below:
Are there current offers for the property?
Length of time the property has been listed.
Is there a Homeowners Association?
Has there been any water damage?
Any structural damage?
How much are the annual taxes?
Is the area fairly transient or does it have stable residents?
Questions a Real Estate Agent Might Ask You
In getting to know you and your needs, a real estate agent might ask if you currently live nearby or what interests you in the area.
An agent might also ask several of the questions shown below:
Do you work nearby?
How many bedrooms do you need?
Do you have kids?
Do you need information about local schools?
How soon do you want to buy a home?
Have you spoken with a mortgage lender?
Apply for a Mortgage Loan Online
A licensed mortgage loan originator in Arizona, California or Colorado can quickly review your situation to determine an affordable home price range.
When you know how much you can afford before visiting an open house, you can submit an offer, if you fall in love with the home.
Applying for a mortgage loan could save you some time, if you are not currently able to qualify to buy the open house you’re planning to visit.
Samantha Cooley, a licensed mortgage broker in AZ, CA and CO, has helped home buyers for more than 20 years.
A quick discussion with Samantha can determine if you’re likely to qualify for a home mortgage loan or reveal actional steps toward improving your financial situation.
Gather Documents for Your Loan Originator
After applying for a mortgage loan, your loan originator will provide a list of items that you will need toward securing an underwriting approval.
However, it’s wise to compile a folder of items that are standard for most home loans, such as a month’s worth of recent paystubs, tax returns and W-2’s for the past two years and three recent bank statements.
Additionally, you should write a letter to describe any unfavorable credit issues or income gaps that you’re aware of.
Assembling these documents before they’re requested could get certain underwriting conditions cleared much faster.
Visit Open Houses With Confidence
In competitive markets, such as AZ, CA or CO, desirable homes for sale receive a lot of attention.
Knowing that you’re qualified to purchase the house that you’re visiting could boost your confidence and give you an advantage against other buyers who have not spoken with a mortgage lender.
If you’re not represented by a real estate agent, visiting an open house could enable you to work with the hosting agent.
Many listing agents can also help buyers find a home to purchase.
An agent who knows that you’ve been approved to buy a home will be happy to assist you.
Mindful Money offers reliable information and professional support for first-time home buyers, previous buyers and for homeowners with other needs, such as a refinance or a reverse mortgage.
Schedule a call with Samantha Cooley today.